PORT DEVELOPMENT THEME SETTING Prof' Willy Winkelmans RIGA, 2006

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PORT DEVELOPMENT THEME SETTING Prof. Willy
WinkelmansRIGA, 2006
Riga 1 March 2006
Hong Kong, December, 2005
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THEME SETTING

• Port development a global issue
• Structural changes in world economy and the need
  for more knowledge and strategic insight
• Port development and the need for a more
  resource-based approach
• In search of core competencies and competitive
  advantages
• First conclusion

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1. Why port development?
Peace through world trade, world trade through
world ports (IAPH)
Enhancing port competition by port increasing
competitiveness
Per definition THE MOST GLOBAL ISSUE
PORTS are more than just HARBOURS or PIERS !
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2. THE IMPACT OF CHANGING MARKETSON PORT
DEVELOPMENT ?

• Structural changes in GLOBAL ECONOMICS are not to
  be under-estimated because port development is a
  GLOBAL ISSUE
• The question is HOW ports are dealing with
  globalisation, and WHAT governments are doing in
  this relation?
• In terms of port strategy and management
• In terms of port competition and level playing
  fields
• In terms of port co-operation and economic
  development
• PRIVATISATION IN ITSELF IS NOT THE ULTIMATE
  KEYWORD
• change in mentality and in attitude or vision,
  i.e. in entrepreneurial culture, is more
  important than change in ownership of property or
  assets

A requirement of creativity is that it
contributes to change. Creativity keeps the
creator alive. (Frank Herbert,
unpublished notes)
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Structural changes
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CHANGE MANAGEMENTIBM GLOBAL CEO STUDY 2004

• Welcome back to the top line
• Growth is a renewed priority
• Maintaining the ongoing emphasis on cost
  containment

The universe operates on a basic principle of
economics everything has its cost. We pay to
create our future, we pay for the mistakes of the
past. We pay for every change we make and we
pay just as dearly if we refuse to change.
(Dune Guild Bank Annals,
Philosophical Register)
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ECONOMIES OF SCALE / ECONOMIES OF SCOPE

• Cost leadership based upon economies of scale no
  longer provides the key to a ports competitive
  advantage! It is too narrow in scope.
• In combination however with so-called economies
  of scope,
• i.e. by applying strategic concepts like
  differentiation, flexibility, productivity and
  clustering core competencies
• the factors constituting specific competitive
  (dis)advantages for the port get appropriate
  managerial care.

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Conclusions from IBM GLOBAL CEO STUDY 2004

• We must respond to an ever faster
• changing environment

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Port Development in Rotterdam case Maasvlakte 2
?
1000 ha
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Length of administrative and legal procedures is
jeopardising consistency in the development?
MORE THAN 20 YEARS ARE NEEDED TO COMPLETE a
UNIQUE PORT DEVELOPMENT!
Maasvlakte 2
1. Concept Havenplan 2010 1991 Port plan
2010 1993 2. Start PMR evaluations 1998 Ma
rket research - 2020 1998 PKB 1 2001 PKB
4 2002 3. Implementation Legal
procedures 2003 Tendering 2004 4.
Construction realisation ???? 2007 5.
Operation ???? 2010
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Outer port of Zeebrugge 30 years to realise
it?Some milestones?
River Scheldt
PROJECT 1200 ha 1970-1972
Nature reserve t Zwin
SEALOCK 1986
OUTER PORT
LNG Terminal 1986
INNER PORT
Container quay 1991
RO/RO 1997
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DEURGANCKContainerdockLeft BankPort of Antwerp
DOEL VILLAGE
Deurganckdok 5 years lost?

• Conceptualisation 1995
• Evaluation Studies 1998-2000
• Implementation go-ahead 1998
• 1st Construction
• 1999
• 1st Protest actions 2001 and halt of the works
• Special validation decree 2002
• 1st Operation
• July 2005

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FIRST SHIP AT DEURGANCKDOK BEFORE END OF 2000?
IN REALITY THE FIRST SHIP CAME ONLY HALF 2005!
De Lloyd 22.01.1998
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Final conclusion from IBM GLOBAL CEO STUDY 2004
Growth and differentiation will happen through
greater focus and attention on people
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3. PORT DEVELOPMENT PARAMETERS
TECHNO-LOGY
?
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A resource-based strategic
planning process
ACTORS
MARKET
Mind the X-efficiency
Balanced Score Board
What does the market demand? What do competitors
offer
Intrinsic and Effective Capacities?
Cope with EXTERNAL FORCES
Enhance Internal capabilities
Never ending process
FEEDBACK
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4. Developing core competencies and competitive
advantages
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HOW TO CREATE PORT SPECIFIC COMPETITIVE
ADVANTAGES?

Competitive advantages built by leveraging
several levels of competencies
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5. Resource-based approachfirst conclusions
A Deep Thought

• A resource-based (developing) strategy is useful
  in the context of port competition and to
  strengthen competitiveness
• it helps port management to meet the ever
  changing competitive conditions by focusing on
  economies of scope
• it enhances the creation of core competencies
  that are inimitable and durable
• and it allows to assess continuously relevant
  changes in the market environment
• The main challenge remains building and securing
  the core competency!

A process cannot be understood by stopping it.
Understanding must move with the flow of the
process, must join it and flow with it
(The Prequel to Dune, House Corrino, First
law of Mentat)
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A relevant upcoming event ITMMAPS 2006

• ITMMAPS 2006
• Fostering seaports - and beyond
• Co-organized by
• ITMMA,
• Dalian Maritime University,
• Antwerp Port Authority
• ESPO
• Antwerp, October 25-28, 2006
• Conference website
• www.ua.ac.be/itmmaps2006

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WORK SESSION ON PORT DEVELOPMENT

• DIEGO TEURELINCX
• (Secretary General FEPORT, EU)
• Case North-West European Ports
• HADI RACHID
• (Head Departement Port Management)
• Case African Ports
• CONSTANTIJN DOLMANS
• (Secretary General, International Association of
  Dredging Companies)
• IADC view point

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Mission statements a question of focus?

• Characteristics
• reflects long-term objective(s)
• reflects ambition(s)
• contains a message to and from both share- and
  stakeholders
• Objectives
• improving port performance, market share,
  cost-efficiency
• creating welfare in terms of added value and
  employment
• minimizing negative external effects in and
  around the port?
• Self-explanatory examples
• Singapore, NPA, many others to excel as a
  maritime hub and to contribute to the well-being
  of the ... Society
• Rotterdam to enhance the shift from a tonnes
  port to a value-added port
• Antwerp tp preserve the quality of service and
  the present added value port